Viewpoints

Part 1

Briefly discuss your understanding of risk return and capital structure to the Law of One Price. Must be answered in (200) words not including references.

Part 2

Responses to each question below should be a (1000) words for each question, using APA format not including references.

1. When should the WACC and the APV be used? How do personal taxes affect the use of these two methods? Use examples when explaining your answer. 1000 words

2. Explain the use of IRR and cash multiples as alternative valuation metrics, and discuss the drawbacks of those methods. In your answer, include how sensitivity analysis affects the evaluation process. 1000 words